According to a new report from research group Ned Davis, several of these pipeline and gathering firms are actually great bets during a period of rising interest rates. The reason is their history of aggressive distribution growth and high distribution coverage ratios — essentially, the cash that an MLP has to cover their current payout as well as future ones. Firms with higher coverage ratios have historically been able to provide yield growth in excess of rising rates. And considering that most MLP yields are already way higher than Treasury payouts, investors can reap major income from holding these partnerships.
In fact, Ned Davis estimates that “MLPs with strong distribution growth over the next 12 months should outperform other MLPs by 15% per year,” according to Barron’s. So who exactly makes the cut? Here are Ned Davis’ top five ideas — yielding up to 7% — for investors looking for MLPs to fight off rising interest rates: Magellan Midstream Partners (MMP), Sunoco Logistics Partners (SXL), Access Midstream Partners (ACMP), Plains All American Pipeline (PAA) and Williams Partners (WPZ).
Source: InvestorPlace
Related Articles:
- Free Cash Flow Payout vs. Dividend Payout
- 9 Dividend Stocks Trading at a Double-Digit Discount
- 6 High-Dividend, Low P/E Value Stocks
- How Much Money Will You Need Before Retiring?
- The 2013 Dividend Achievers
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.